Kimco Marketing 317 Kmart Stores

Kmart received court approval on January 29, 2003 to close these stores.

Under the agreement, Kimco or its affiliate will work with Kmart inidentifying retailers, investors, landlords and other parties interested inobtaining these properties. Kimco may invest in, redevelop and/or improve the properties in order to maximize their value.

The locations to be marketed range in size from approximately 50,000 sf to more than 190,000 sf and are located in freestanding, stripand mall locations in 44 states and Puerto Rico. This group of storesincludes 57 Kmart SuperCenter locations.

The store closings are intended to enhance Kmart's financial and operatingperformance by allowing it to further reduce costs, improve cash flow,streamline distribution and focus its resources more efficiently, saidcompany officials. Store closing sales are underway and will continue,depending on the location, for approximately two to three months.

Kmart Corp. and 37 of its U.S. subsidiaries filed voluntary petitions forreorganization under Chapter 11 of the U.S. Bankruptcy Code on Jan. 22,2002. The company has closed approximately 600 under-performing ornon-strategic stores, rejected leases for previously closed stores, soldthree corporate aircraft, streamlined the Company's management structure,reduced staffing levels at the company's Troy headquarters, and introducedmore efficient business practices throughout the organization, said Kmartofficials.